Vidyawati Kumari vs The State Of Bihar
2023 Latest Caselaw 5369 Patna

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.15897 of 2022
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Vidyawati Kumari D/o Jayram Ram resident of Village- Tiyara, P.O.- Manoharpur, P.S.- Rajpur, District- Buxar, At present of Village- Hukhan, P.S.- Buxar (Muffasil), District- Buxar ... Petitioner Versus

1. The State of Bihar through the Principal Secretary, Industries Department, Bihar, Patna.

2. The Director, Technical Development, Industries Department, Bihar, Patna.

3. The Director Industries, Bihar, Patna.

4. The General Manager, District Industries Centre, Buxar ... Respondents ====================================================== Appearance :

     For the Petitioner     :       Mr.Abhash, Adv.
     For the Respondents    :       Mr.Subhash Pd. Singh, GA III

====================================================== CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY CAV JUDGMENT

Date : 17-10-2023

Heard learned counsel for the parties.

2. The present Writ Petition is filed for the following

relief(s) :

(i) To issue an appropriate order/s direction/s including a writ preferably in the nature of CERTIORARI for quashing the Memo NO. 1428 dated 20-06-22 issued by Principal Secretary, Industry Department, Bihar, Patna whereby and where under representation filed by the petitioner has been rejected.

(ii) To quash the letter No. 263 dated 19-08-2021 issued from the office of the General Manager, District Industries Centre, Buxar (Hereinafter referred to as Respondent No. 04) to the petitioner whereby and where under she has been directed to return a sum of rs. 2, 50,000/- sanctioned through account under the Chief Minister SC/ ST entrepreneur scheme for opening a business of carpentry wooden, furniture which has not been Patna High Court CWJC No.15897 of 2022 dt. 17-10-2023

utilized with in time and hence amount in question was directed to deposit in the account of Bhar Start- up Fund Trust, Patna bearing Account No. 39442695081 SBI, Bailey Rad, Patna I.F.S.C. code SBIN0006379 failing which action shall be taken under Public Demand Recovery Act.

(iii) To quash the letter No-109 dated 08-03-2021 issued from the office of respondent No. 4 to the petitioner whereby and where under petitioner has been directed to deposit First installment within a week in the account of Bihar Start-up Fund trust, Patna and inform the office failing which amount shall be recovered under the Public Demand Recovery Act.

(iv) to quash the letter No. 250 dated 17-07-20 issued from the office of Respondent No. 4 issued to the petitioner whereby and where under petitioner has been directed to submit utility certificate of First installment under Chief Minister SC/ST Entrepreneur scheme and open the current bank account within time limit failing which her candidature shall be cancelled followed by recovery of amount financed to petitioner.

(v) To direct respondent NO. 4 to sanction rest of amount of 2nd and 3rd installments amounting to Rs. 7,50,000/- in favour of the petitioner for establishment of plant and machineries and issue utility certificate accordingly.

(vi) To any other relief/s to which the petitioner is entitled in the facts and circumstances of the case.

3. Learned counsel for the petitioner has stated that the

petitioner had applied under the scheme floated by the Government of

Bihar for extending interest free loans to all the entrepreneurs belong to

the Scheduled Castes and Scheduled Tribes. That under the Scheduled

Castes and Scheduled Tribes entrepreneurs scheme an amount of Patna High Court CWJC No.15897 of 2022 dt. 17-10-2023

Rs.10,00,000/- is extended to the said entrepreneurs for starting small

scale industry. The petitioner has also applied under the said scheme

on 09.08.2018 for starting a carpentry and wooden furniture workshop.

Thereafter, on the application made by the petitioner an amount of

Rs.2,50,000/- was paid as a first installment out of the total sanctioned

amount of Rs.10,00,000/-. The workshop was setup in the name of

Anannya Furniture, situated at village Hukhan, P.O. Sondhila, District

Buxar. It is stated that though the petitioner had submitted vouchers

and sought release of the second installment of Rs.5,00,000/-, the same

has not been done till date the balance amount of Rs.7,50,000/- has not

been released. The petitioner has received a notice, dated 17.07.2020,

vide Letter No. 250 from the General Manager, District Industry

Center, Buxar, directing her to open a current account in the name of

the petitioner and the petitioner in compliance of the said letter opened

a current account in the Central Cooperative Bank Limited, Ara

Branch, Ara. Though the petitioner has been making several

representations to the concerned officials for releasing the balance

installment of Rs.7,50,000/- out of the total sanctioned amount of

Rs.10,00,000/-, the authorities have not issued any orders nor released

the said amount. The petitioner had received a notice, dated

19.08.2021, directing her to return the first installment amount of

Rs.2,50,000/- for not furnishing the utility certificate and not utilizing

the sanctioned amount for the purpose for which it is sanctioned, Patna High Court CWJC No.15897 of 2022 dt. 17-10-2023

failing which necessary action would be taken under the Public

Demand Recovery Act. Thereafter, the petitioner has approached this

Hon'ble Court vide C.W.J.C. No. 17157 of 2022 and this Court vide

order, dated 22.01.2022, has passed an order directing the petitioner to

make a representation to the authorities concerned and on such

representation being made authorities were directed to consider the

same. In compliance of the above order, the petitioner has submitted a

representation, however, the said representation was rejected in a

mechanical manner. Learned counsel has stated that the petitioner

having been found as an eligible candidate was sanctioned an amount

of Rs.10,00,000/- and the first installment of Rs.2,50,000/- was also

sanctioned in favour of the petitioner. The petitioner has utilized the

said amount of Rs.2,50,000/- by setting-up on unit and started

production. Learned counsel has drawn the attention of the Court to

the bills submitted by the petitioner for purchase of machinery and for

establishment of the unit. Learned counsel has stated that the action of

the authorities in directing the petitioner to submit a utility certificate

for the amounts of Rs.2,50,000/- is without any legal basis and there is

no requirement under the said scheme for submitting any utility

certificate. Learned counsel has stated that the petitioner had made a

representation duly enclosing the purchase receipts evidencing the

purchasing of the machinery and the same was not taken into

consideration by the authority concerned. The authorities without Patna High Court CWJC No.15897 of 2022 dt. 17-10-2023

considering the documents submitted by the petitioner have rejected the

representation in a mechanical manner. Further, it is stated by the

learned counsel for the petitioner that even before the disbursal of the

second installment the question of submitting any utility certificate

does not arise. That the action of the authorities in demanding the re-

payment of first installment is contrary to the provisions of the scheme.

The scheme provides for re-payment of the loan amount only after a

period of one year from the date of disbursal of the third installment,

but, not before that. Learned counsel has therefore prayed this Hon'ble

Court to allow the present Writ Petition.

4. Per contra, the learned counsel appearing on behalf

of the respondents has stated that the petitioner has not utilized the

amount of Rs.2,50,000/- which was released in her favour for the

purpose for which it was sanctioned. That on an inspection of the unit

set-up by the petitioner, it was found that the petitioner has misutilized

the funds and the vouchers which were submitted by the petitioner for

purchase of the equipments were not found correct. That in spite of

putting the petitioner on notice directing her to submit the utility

certificate for the first installment, the petitioner has failed to do so.

The authorities left with no other option had to necessarily cancel the

selection of the petitioner and the petitioner was directed to re-pay the

1st installment. That pursuant to the direction of this Hon'ble Court the

Selection Committee has gone through the relevant records and came Patna High Court CWJC No.15897 of 2022 dt. 17-10-2023

to the conclusion that the petitioner has not followed the terms and

conditions of the sanctioned letter and violated the scheme. Learned

counsel has, therefore, prayed this Hon'ble Court to dismiss the present

Writ Petition.

5. A perusal of the impugned order reveals that the

grant made to the petitioner has been cancelled and she has been

directed to refund the loan amount of Rs.2,50,000/-. Under the scheme

floated by the Government the petitioner has been selected for a term

loan/grant whereby she is entitled to 50% of the cost of the project as

loan which is interest free subject to the condition that the loan does not

exceed Rs.10,00,000/-. As per the terms of the said scheme the

recovery is after a period of one year after a third installment is paid to

the applicant. The grounds on which the impugned order of

cancellation of grant is passed is that the petitioner has not utilized the

loan amount of Rs.2,50,000/- for the purpose for which it was given

and also that she has not utilized the amount within one year from the

date of sanction. Further, it is also stated that the petitioner in spite of

being put on notice to submit a utility certificate has not done so.

6. The petitioner has earlier approached this Hon'ble

Court vide C.W.J.C. No. 17157 of 2021 and this Court while declining

to interfere with the order passed by the authority has directed the

petitioner to make a representation to the authorities, pursuant to which

the petitioner has made a representation on 13.04.2021. In the Patna High Court CWJC No.15897 of 2022 dt. 17-10-2023

representation the petitioner has taken a stand that though she has

applied for utility certificate the concerned officer was asking a bribe of

Rs.15,000/- for giving the said utility certificate. Though the petitioner

has been making a complaints about the demand of bribe by one of the

officers concerned for giving a utility certificate no enquiry has been

conducted by the authorities concerned for the reasons best known to

them and no action was taken on the said complaint. Pursuant to the

orders of this Court on the representation made by the petitioner the

official respondents have passed the impugned order whereby the

request made by the petitioner for sanctioning the balance amount of

Rs.7,50,000/- has being negatived and the grant has been cancelled and

the earlier orders were reiterated. Once the Committee has come to the

conclusion that the petitioner has not utilized the amount for which

they were supposed to be utilized and within the time period stipulated

as per the terms of the scheme, this Court is not inclined to substitute

its wisdom to that of the decision taken by the authorities. Whether the

petitioner has utilized the amount for the purpose for which it was

allotted or not, whether she has mis-utilized the funds sanctioned are all

disputed questions of fact which cannot be gone into under Article 226

of the Constitution of India. The contention of the counsel for the

petitioner that the authorities do not have right to ask for submission of

the utility certificate is misplaced and not correct. Once the loan is

disbursed the authorities are bound to verify whether the loan amount is Patna High Court CWJC No.15897 of 2022 dt. 17-10-2023

being utilized properly or not and for the purpose for which it is

sanctioned. The order passed by the Committee is a well reasoned

order and does not call for any interference. Therefore, this Court is

not inclined to interfere with the order passed by the Principal

Secretary, Industry Department, Bihar, Patna (Respondent No. 1) vide

Memo No. 1428 dated 20.06.2022. This Court does not find any merit

in the present CWJC to interfere with the orders passed by the

authorities and the Writ Petition is accordingly, dismissed.

7. However, having regard to the fact that the petitioner

is a lady and the loan amount was granted in the year 2019, the

petitioner is obligated to re-pay the loan amount as per the terms and

conditions of the scheme, the petitioner has to repay the loan amount in

installments after one year from the date of disbursal of the 3 rd

installment. However, in this case the grant itself is cancelled and the

petitioner was not paid the 2nd or 3rd installments. The petitioner is

directed to make a representation to the authorities for repaying the

loan amount in installments within two weeks from the date of this

order and on such representation being made the authorities shall

consider the representation sympathetically and grant installments.

8. With the above directions, the Writ Petition stands

dismissed.

(A. Abhishek Reddy , J) Shamshad/-

AFR/NAFR                NAFR
CAV DATE                29.08.2023
Uploading Date          18.10.2023
Transmission Date       NA